PostBank Uganda (PBU) and MTN Mobile Money (U) Limited have teamed up to launch XtraCash, an innovative digital micro-lending solution tailored for MTN mobile money subscribers. This exciting initiative aims to provide financial assistance to approximately 13 million mobile wallet holders across Uganda, offering them a convenient and accessible way to meet their short-term financial needs.
During the launch, PostBank Uganda’s Managing Director, Julius Kakeeto, emphasized the importance of partnerships in achieving their vision.
He stated, “As PostBank Uganda, we want to go far, and this means that we form partnerships with stakeholders like MTN MoMo with whom we share the same vision of not only growth but also fostering prosperity for Ugandans through ushering them to the money economy.”
Kakeeto elaborated on the need for financial solutions that cater to everyday cash flow challenges, saying, “We are cognizant that people always run out of cash and need some XTRA Cash to keep them running.”
A step towards financial inclusion
XtraCash is designed to address the growing demand for accessible credit, particularly among underserved and unbanked communities.
Richard Yego, the Chief Executive of MTN MoMo, expressed his enthusiasm for the collaboration: “At MTN MoMo, we are committed to driving financial inclusion and ensuring that every Ugandan has access to financial services, regardless of their location or economic standing.”
He further noted that this product not only provides convenience but also opens doors to opportunities that can significantly improve livelihoods.
Yego emphasized the impact of XtraCash on daily life: “By making micro-loans easily accessible to users, we are not only providing financial relief but also opening doors to opportunities that can improve livelihoods and support businesses.”
This sentiment resonates deeply in a nation where many rely on mobile money for their transactions.
How XtraCash works
To qualify for an XtraCash loan, individuals must be active MTN MoMo users for at least six months and over 18 years old.
Eligible users can easily check their maximum loan limit by using the MTN MoMo App or dialing 1655#. This straightforward process reflects a commitment to making financial services more user-friendly and accessible.
Building on previous successes
The launch of XtraCash is not PostBank and MTN MoMo’s first venture together. They previously introduced Wendi, a mobile wallet aimed at facilitating government fund disbursements. This partnership has already demonstrated significant potential in enhancing financial inclusion in Uganda.
Kakeeto remarked on this ongoing commitment: “This product is here to extend support to the millions of Ugandans who rely on mobile money for their everyday transactions.”
The bigger picture
The introduction of XtraCash underscores a broader mission: empowering communities through innovative financial solutions.
With only 10% of Ugandans having bank accounts while 53% use mobile money, initiatives like these are crucial in bridging the gap between traditional banking services and the vast majority of unbanked individuals.
As both institutions continue to innovate, they remain focused on their shared goal: fostering economic growth and prosperity for all Ugandans. With products like XtraCash and Wendi leading the way, the future looks promising for financial inclusion in Uganda.
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